Aisling has a Retirement Annuity Contract. If she dies today, the proceeds of her RAC must be paid to her:

• A. surviving husband or civil partner
• B. estate
• C. nominated beneficiaries
• D. dependants in equal shares

Answer: (B)

The key idea is how death benefits from a RAC are handled when the member dies before accessing the fund. A Retirement Annuity Contract lets you nominate who should receive the death benefit, but this only applies if you have a valid nomination in place. If there is no nomination, the default rule is that the proceeds go to the member’s estate. The estate will then be distributed according to the will or applicable intestacy rules. So, without a valid nomination, the RAC proceeds must be paid to the estate. If a nomination existed, those chosen beneficiaries would receive the funds instead, potentially bypassing the estate.